Why do my credit card finance charges make no sense?
because I’m being charged interest immediately on purchases as soon as they are made. This is the way it’s always been on all credit cards AFAIK. I’m not sure what logic you’re applying but the deal is you only avoid interest by paying off the balance. If you’re carrying a balance, you start paying interest immediately on new payments. There are an infinite number of ways they could choose to decide when and how to charge interest and this is the one they chose — the only thing that makes one more logical than the other is this way makes them more money than what you expected. I’m STILL charged interest on any average daily balance in MARCH, even though I paid the full $1900, my balance at the end of february This used to be the case mainly on cards for subprime borrowers but over the past year many (most?) other cards have started to do this too. Again, there are any number of ways they could have chosen to determine the price their services and this is the one they chose. It’s defin
Ok – Pompomtom – what I meant was that it is of no consequence to this question I am asking. I already understand there are different ways of calculating a daily or monthly interest rate, so I wasn’t asking about that specifically. Unrelated: This place often surprises me with how quickly assumptions are made about the people asking questions. I do not live off my credit cards, and I pay off the balance in full almost all months. I wasn’t asking for financial advice, especially not given in a condescending way. E.g.: Flabdat, did you really add anything valuable to the conversation with that comment?
